Paschal Donohoe (Dublin Central, Fine Gael) | Oireachtas source

For the purpose of being clear about how this issue is dealt with, I must inform the Deputy that there are a number of ways in which section 291A is structured to try to make sure it is not used for tax avoidance purposes. I will list the key ones, given the claims the Deputy has just made. Relief is only available where a company is carrying out a bona fide trading activity in respect of the management, development or exploiting of intangible assets. Relief is not available in respect of any expenditure incurred as part of a tax avoidance scheme. Under the scheme, allowances can only be offset against income of development trade in which the intangible assets are used, not against any other profits. An arm's-length rule applies, ensuring that the correct amount of income expenditure is attributed to the relevant trade and to prevent excessive relief being claimed. Finally, provision is made for Revenue to engage an expert to assist in the determination of arm's-length values where necessary, and the Revenue Commissioners keep these measures under review all the time to make sure they are operated as intended.